LAW 3102 Study Guide - Midterm Guide: Independent Contractor, W. M. Keck Observatory, Meeting Of The Minds
Document Summary
Agency is a consensual relationship in which one person (the agent) acts as representative of or otherwise acts on behalf of another person (the principal) with power to affect the legal rights and duties of the principal. The principal has a right to control the actions of the agent. Agent is one who represents another, the principal, in business dealings with a third person. The operation of agency involves three people: the principal, the agent, and a third party who deals with the agent. When dealing with the third party, the agent acts for and in the name and place of the principal. Within the scope of the authority granted to the agent by the principal, the agent may negotiate the terms of contracts with others and bind the principal to such contracts. A person may do through an agent whatever business activity he may accomplish personally.
